If a regional cooperative is established for Cilantro Taco Grill, how many votes will each outlet have?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Currently, our System has no regional advertising fund or cooperative. However, we may decide to establish a regional fund or cooperative in the future and your participation may be mandatory, in our sole discretion. A regional cooperative will be comprised of all franchised Cilantro Taco Grill outlets in a designated geographic area. Our affiliate-owned outlets may participate in a regional cooperative, in our sole discretion. Each Cilantro Taco Grilloutlet will have one vote in the cooperative. We will determine in advance how each cooperative will be organized and governed. We have the right to form, dissolve, merge or change the structure of the cooperatives. If a cooperative is established during the term of your Franchise Agreement, you must sign all documents we request and become a member of the cooperative according to the terms of the documents. Currently, there are no governing documents available for your review.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, if a regional advertising cooperative is established, each Cilantro Taco Grill outlet will have one vote in the cooperative. The FDD specifies that these cooperatives will consist of all franchised Cilantro Taco Grill outlets within a designated geographic area, and Cilantro Taco Grill's affiliate-owned outlets may participate at their discretion.
Cilantro Taco Grill retains significant control over the cooperative's structure and governance, determining in advance how it will be organized and managed. They also reserve the right to form, dissolve, merge, or change the structure of these cooperatives as they see fit. Franchisees are obligated to sign all requested documents and become members of the cooperative if one is established during their Franchise Agreement term.
It's important to note that currently, there are no governing documents available for review regarding these regional cooperatives. This means prospective franchisees lack specific details on the cooperative's operational rules, decision-making processes beyond the one-vote-per-outlet rule, and other critical aspects of governance. Franchisees should seek clarification from Cilantro Taco Grill regarding the specifics of these cooperatives before signing the Franchise Agreement.